FHA loan limits are the maximum base loan amounts FHA will insure, set by county and updated each year. They're tied to local home prices and fall between a national floor for lower-cost areas and a ceiling for high-cost areas, with higher limits for 2–4 unit properties. You can look up any county on HUD's FHA mortgage limits page.
How the limits are set
HUD sets FHA limits using median home prices in each area, following the formula in federal law. The limits are tied to the conforming loan limit set each year by the Federal Housing Finance Agency, which is why FHA limits typically change every January when the new figures take effect.
Most counties fall in between. In lower-cost areas, the limit sits at the floor — a nationwide minimum. In expensive metro areas, it rises toward the ceiling, a nationwide maximum. A few special areas, such as Alaska, Hawaii, Guam, and the U.S. Virgin Islands, have higher limits because of construction costs.
Floor, ceiling, and everything between
| Area type | How the limit is set |
|---|---|
| Low-cost county | At the national floor, even when local prices are lower |
| Mid-cost county | Based on the local median home price |
| High-cost county | Capped at the national ceiling |
| Special exception areas | Adjusted upward for high construction costs |
Metropolitan areas usually share one limit across their counties, based on the highest-cost county in the group. That's why a rural county next to a big city may have a higher limit than you'd expect.
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Talk with MatthewLimits for 1–4 unit properties
Each county has four limits: one each for single-family homes, duplexes, triplexes, and fourplexes. The more units, the higher the limit. That's one reason FHA is popular with buyers who want to live in one unit and rent out the rest — the 3.5% minimum down payment applies to multi-unit homes too, and rental income from the other units may help you qualify.
Multi-unit purchases do come with extra requirements. Lenders generally want cash reserves after closing, and a buyer with no landlord experience may see limits on how much projected rent can be used.
For 3–4 unit properties, FHA also applies a self-sufficiency test: projected net rental income generally needs to cover the full house payment. The DTI guide explains how rental income is counted.
Why the limit matters when you shop
In many parts of the country, the FHA limit is comfortably above typical prices and never comes up. In higher-priced and rising markets, though, it can shape your search. Buyers near the limit often find that a slightly more expensive home would push the loan over the cap, which changes the down payment needed or the loan type altogether.
- Know the number before you tour homes. It helps you and your agent set a realistic range.
- Remember the down payment. With the 3.5% minimum, the highest price you can finance at the minimum is a bit above the limit itself.
- Watch for January changes. If you're shopping late in the year, a new limit may be announced for the coming year.
- Check the property's county, not the mailing city. Addresses near county lines can fall under a different limit than you'd assume.
Look up your county's limit
- Open HUD's FHA mortgage limits lookup.
- Choose FHA Forward as the limit type and select your state and county (or search by metro area).
- Read the column for the number of units you're buying.
- Check the effective year — limits change each January.
What if the price is above the limit?
You can still buy a home priced above the FHA limit — you just can't borrow more than the limit. Options include:
Larger down payment
Bring enough cash, gift, or assistance funds to bring the loan amount under the county limit.
Conventional or jumbo
Conventional loans have their own higher conforming limits, and jumbo financing goes beyond them — generally with stricter credit and down payment rules.
VA or another program
Eligible Veterans with full entitlement aren't bound by a VA loan limit. See VAExpressLoans.com.
Price negotiation is also fair game, especially if the appraisal comes in low. Matthew can compare these paths side by side for the home you're considering.
Limits and other FHA programs
The same county limits apply to most FHA products, including streamline and cash-out refinances, condos, and 203(k) renovation loans, where the limit caps the combined purchase and repair financing. Reverse mortgages (HECMs) use a separate single national limit. HUD updates its handbook regularly and lenders can add their own overlays, so Matthew will confirm the current guidelines for your file.
Frequently asked questions
How often do FHA loan limits change?
Generally once a year, taking effect January 1. In years when home prices fall, limits can stay the same or drop in some counties.
Is the limit based on the purchase price or the loan amount?
The loan amount. You can buy a more expensive home if your down payment brings the base loan under the limit.
Why is my county's limit the same as the next county over?
Counties in the same metropolitan area usually share a single limit based on the highest-cost county in that area.
Do FHA limits apply to refinances?
Yes. Streamline and cash-out refinances are subject to the county limit, along with their own loan-to-value rules.
Are FHA limits the same as conforming loan limits?
No. They're linked by formula, but FHA limits are generally lower in most counties, and the two can differ significantly in mid-cost areas.
Does the upfront MIP count against the limit?
Generally no. The limit applies to the base loan, and financed upfront MIP can be added on top.
Ask Matthew about your FHA home loan
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